Ensuring that your business is in good health and able to take on financial challenges is important for the ongoing success of your business.  Below are six Key Performance Indicators (KPI) that will measure the financial heath of your business.

1.  Revenue Growth Rate – The rate at which business revenue is growing.

2.  Gross Profit Margin – The percentage of revenue that is profit after accounting for cost of goods sold, cost of services provided.

3.  Net Profit Margin – The percentage of revenue that is net profit.

4.  Accounts Receivable Days – The number of days it takes for a business to collect its invoices.

5.  Current Ratio – The ability of a business to pay its debts over 12 months.

6.  Margin of Safety – The amount of sales / revenue a business can lose before the break even point is reached.

If you would like to discuss further please contact us:

McNamara and Co - Chartered Accountants, located minutes from the Melbourne CBD
www.mcnamaraandcompany.com.au/contact-us
Phone +61 3 9428 1062
Email admin@mcnamaraandco.com